Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
U.S. Dollar Slides for Second Week as Tariff Threats and Iran Tensions Shake Markets 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
The Bank of Japan (BOJ) remains committed to its rate-hike stance despite growing concerns over the economic impact of U.S. tariff policy, according to Deputy Governor Shinichi Uchida. Speaking to parliament on Tuesday, Uchida said the BOJ expects wages and prices in Japan to continue rising, supported by a tight labor market and companies passing on higher costs.
Although the BOJ acknowledges that U.S. tariffs, spearheaded by President Donald Trump, could dampen Japan’s export-driven growth, Uchida emphasized that monetary tightening would continue if inflation and the broader economy improve as forecast. He noted that while inflation expectations may stagnate in the short term, structural labor shortages will likely sustain upward wage pressures.
At its latest meeting on May 1, the BOJ held its benchmark rate steady at 0.5% but slashed growth projections, citing uncertainty from trade tensions. However, minutes from the meeting showed that some policymakers remain open to resuming rate hikes if U.S.-China trade relations stabilize.
One board member stressed the importance of flexibility, suggesting the BOJ should act swiftly to resume rate increases if external conditions improve. Another warned that Japan's economic outlook remains highly sensitive to shifts in global trade dynamics, especially U.S. tariff decisions.
The BOJ is also set to review its bond tapering strategy in June. With long-term yields rising, board members highlighted the need to reassess liquidity across bond maturities. The current tapering plan extends through March 2026, but a revised roadmap for fiscal 2026 and beyond is expected.
Despite near-term headwinds, the BOJ maintains its medium-term inflation target of 2%, underscoring its willingness to act should price and wage growth gain traction amid shifting global conditions.
